Member

20: After Clause 10, insert the following new Clause— “Special administration: continuity of payment obligations(1) This section applies where a purchaser under a contract to which the CPILPA 1998 applies is subject to a special administration regime.(2) The provisions of the CPILPA 1998 relating to payment terms and statutory interest (including sections 2B, 2C and 2D and Part 1B of that Act) continue to apply in relation to a relevant supply notwithstanding the special administration or any moratorium having effect in connection with it. (3) Nothing in this section affects the operation of any such moratorium specified in subsection (2) in relation to the enforcement of a debt.(4) In this section “relevant supply” means a supply of goods or services made after the appointment of the special administrator—(a) at the request of, or with the agreement of, the special administrator, or(b) in circumstances in which section 233, 233A or 233B of the Insolvency Act 1986 (as applied in relation to the special administration regime concerned) restricts the supplier from terminating the contract or the supply, or from making continued supply conditional on payment of outstanding charges.(5) In determining for the purposes of the CPILPA 1998 the maximum period within which a relevant payment or relevant construction payment in respect of a relevant supply must be paid, the purchaser is to be treated as if it were a public authority.(6) Sums payable in respect of a relevant supply, including statutory interest, are payable as expenses of the special administration.(7) Nothing in this section—(a) applies in relation to sums payable for goods or services supplied before the appointment of the special administrator takes effect (see section (Special administration: sums owed to suppliers required to continue supply));(b) except as provided by subsection (5), affects the order of priority in which debts, liabilities or expenses are payable under or in connection with the special administration regime.(8) In this section—“special administration regime” means a procedure under any enactment which provides for the administration of a company by a person appointed by the court and applies provisions of the Insolvency Act 1986, with or without modifications, for purposes that include securing the continued provision of a supply or service (including special administration under sections 23 to 26 of the Water Industry Act 1991, sections 59 to 65 of the Railways Act 1993 and sections 154 to 171 of the Energy Act 2004);“special administrator” means the person appointed to manage the affairs of the company under such a procedure.”Member’s explanatory statement This amendment seeks to provide that the maximum payment periods and statutory interest under the Bill continue to apply to supplies made to a company in special administration at the administrator's request or in circumstances where insolvency legislation restricts the supplier from ceasing supply, and would apply the 30-day period the Bill sets for public authorities to such supplies.